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    Matrix Chip Corporation

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    Matrix Chip Corporation has assets, costs, and current liabilities are proportional to sales. Matrix Chip Corporation maintains a constant 50% dividend payout. No external financing is possible. What is the sustainable growth that can be achieved?

    Income statement
    Sales $880
    Costs $626
    Taxes $51
    Net income $204

    Balance sheet
    Current assets $ 200 Current liabilities $ 400
    Fixed assets 2,000 Long-term debt 700
    Equity 1,100
    Total Assets $2,200 Total Liabilities and Equity $2,200

    Ans. _______%

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    Matrix Chip Corporation has assets, costs, and current liabilities are proportional to sales. Matrix Chip Corporation maintains a constant 50% dividend payout. No external financing is ...

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    This solution is comprised of a detailed explanation to answer what is the sustainable growth that can be achieved.

    $2.19

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